Core Functions of Third-Party Logistics (3PL) Providers - ECOMM
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Core Functions of Third-Party Logistics (3PL) Providers

Core Functions of Third-Party Logistics (3PL) Providers

Third-party logistics, also called 3PL, involves the need for many organizations to outsource the work of their supply chains to third-party businesses. In the world of business, you need the services of third-party logistics companies that provide comprehensive and one-stop solutions for distribution, warehousing, transportation and order fulfillment, keeping your supply chains in mind.

Due to third-parties, order fulfillment almost always has to be outsourced. If you own a warehouse, you will need to rent shelf space in a large warehouse that stores products from multiple businesses. To accomplish this task, warehouse workers must collect your products and deposit them into inventory.

Storage: Inside the 3PL warehouse, you have to store the goods in a safe place.

Distribution: Once the order is received, the third-party logistics partner collects and distributes the items to each customer for order fulfilment.

Transportation: 3PL companies work with carrier partners, and charge shipping costs from different carriers.

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